David Energy is a technology-driven retail energy provider led by CEO James McGinniss with a mission to run the grid on clean energy 24/7/365. The company builds a network of connected devices that respond to fluctuations in clean energy generation in real time. It operates two business lines and currently serves residential electricity customers in Texas and multi-unit business owners in New York, New Jersey, Massachusetts, and Texas. David Energy plans to use new funding to continue scaling both business lines in its active states and to begin expanding across the Northeast and Mid-Atlantic. Since its launch in 2019 the company has raised a total of $50M from venture capital and strategic investors. David Energy offers a software-driven retail electricity platform that integrates with customer devices (smart thermostats, EV chargers, backup generators, batteries, and solar) to analyze and control demand in real time. The platform leverages distributed energy resources directly into electricity markets to buy and deliver power more efficiently than incumbent providers and shares savings with customers. David positions its product to reduce costs, avoid outages, and lower reliance on carbon-intensive peaker plants while introducing transparency and modernity to a traditionally opaque industry. The company has been operating as a retail energy provider in New York, New Jersey, and Massachusetts and has submitted an application to expand into Texas. Financially, David Energy recently closed a $20.5 million Series A to scale its offerings. The company plans to use the capital to rapidly scale its SMB offering in New York, expand services into Texas, and launch a beta residential product in both markets. David Energy operates a software platform called Mycor that leverages building demand data and on-site assets to shift energy use to times when renewable power is most available and cheapest. The company bundles its energy-management software with a market energy supply contract, selling energy to customers at a fixed price and capturing margins from differences in wholesale pricing. To underwrite customer purchases, David obtained a $15 million monthly revolving credit facility from Hartree Partners that provides working capital to buy power upfront. The startup also raised $4.1 million in venture financing led by Equal Ventures, alongside Operator Partners, Box Group, Greycroft, Sandeep Jain, Xuan Yong, Kiran Bhatraju and Jason Jacobs’ My Climate Journey Collective. David holds retail electricity licenses in New York, New Jersey and Massachusetts and says it plans to expand around the country. The company previously raised $1.5 million in a pre-seed round in March 2020. David Energy has developed a proprietary machine-learning Energy Operating System that streamlines wholesale energy purchasing, reports sustainability metrics, and optimizes distributed energy resources such as smart thermostats, battery storage, and solar for commercial and industrial buildings. The platform is designed to give building owners and operators control and visibility over energy supply contracts while integrating customer resources into energy markets. The company takes a flat SaaS fee rather than a large markup on procured power to align incentives with customers. David Energy acquired R3 Energy Management prior to the Pre-Seed fundraise and leverages that team and technology as part of its offering. Founders James McGinniss (CEO), Brian Maxwell, and Ahmed Salman (CTO) bring experience in energy management, automation, and renewable project development. The company positions itself to help customers source cleaner energy and comply with new regulations such as New York’s Climate Mobilization Act.

Total raised

$64M

Funding rounds

5

Latest round

Equity

Latest activity

Sep 2024